Reading 2-VI: Standards of Professional Conduct & Guid

companies, following, research, produces, regular

Q4. A firm produces regular proprietary research reports on various companies. According to Standard VI(B), Priority of Transactions, which of the following would be an “access person?”

A) A supervisory analyst who reviews all research reports prior to dissemination.

B) An independent auditor with access to material, non-public information on a company being analyzed.

C) A person working in the mail room.

Q5. An unpaid intern at an investment firm has the task of photocopying unannounced investment recommendations after all regular employees have left for the day. With respect to Standard VI(B), Priority of Transactions, the firm:

A) is probably violating the Standard.

B) cannot be in violation because Standard VI(B) does not address this issue.

C) is acting appropriately by having an unpaid intern do the job.

Q6. An analyst likes to trade options in her own account. She does not deem any of her client accounts suitable for option trading. When she finds a favorable options position, in accordance to Standard VI(B), Priority of Transactions, she should:

A) first tell her clients about it before acting herself.

B) refrain from acting until she notifies her supervisor.

C) act on it on her own behalf as she sees fit.

Q7. An analyst routinely has the opportunity to offer his clients the opportunity to purchase “hot new issues.” He tells his clients that he will distribute each issue equally among those interested, with himself included in the distribution. The clients do not object to this. With respect to Standard VI(B), Priority of Transactions, this:

A) cannot be a violation because the clients know of the practice and agree.

B) may be a violation because it is impossible to distribute hot new issues equally.

C) may be a violation despite the clients' approval.